“McClellan said his timing models suggest ‘THE’ top in stocks will be hit some time over the next week. He expects ‘nothing good for the bulls for the rest of the year,’ he said in a phone interview with MarketWatch.
“McClellan doesn’t have a strong view on how far stocks could fall, just that it will probably be an ‘ugly decline’ lasting into early 2016. … ‘I try to get the direction right, and I let the magnitude take care of itself,’ McClellan said. …
“[O]ne reason he expects a big selloff to start as early as this week is a chart showing that liquidity in the financial markets is about to dry up, as investors prepare for the Federal Reserve’s inevitable interest-rate hike.”
— Excerpt contributed by Mark Johnson
Z-val definition and more forecasts in The Z-val Zone.
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